The Department for Work and Pensions has boosted its household support fund to provide an additional £500 million in the wake of the Budget.
Department for Work and Pensions Extends Cost of Living Support
The DWP's announcement comes after Chancellor Jeremy Hunt's Spring Budget, which pledged additional aid on top of normal payments for the most impoverished households. Additional benefit hikes, such as an expansion of the Household Support Fund, which was initially proposed in October 2021, are scheduled to begin this April. This six-month extension, supported by £500 million, is intended to assist the most disadvantaged households.
According to the DWP, the payments will be made either immediately through a transfer or by means of a voucher that may be used to pay for groceries and energy costs.
The fund was not mentioned by Jeremy Hunt in the budget. Furthermore, given the decline in both inflation and the cost of petrol and electricity, this assistance may be the final one provided by the present administration.
The DWP has also declared that it is offering assistance to borrowers who rely on Universal Credit. They said: “To support households from falling into debt the Government is taking decisive action to ensure claimants retain more of the money they receive from Universal Credit.”
Government's Initiative to Boost Employment and Financial Security
The DWP announced that it will carry out the Additional Jobcentre Support trial. It plans to expand its job help programme to an additional 30 sites, bringing the total number of sites to 150. More individuals will be able to enjoy the financial, emotional, and physical advantages that come with employment thanks to our initiative.
Mr. Stride said: “Work is the best way to secure long-term financial security, which is why in this budget the government is rewarding hard work with more tax cuts, boosting growth, and helping families with the challenges they’re facing.
“The long-term decisions announced by the chancellor will put £900 back in the pockets of 27 million employees this year and support the equivalent of 200,000 people into work — when taken together with the next generation of welfare reforms we’re already rolling out.”
The Government claims that the 2p reduction in National Insurance starting in April would save the typical person £450. When combined with the 2p decrease earlier in the year, this comes to a total savings of £900.
The Department for Work and Pensions (DWP) estimates that the expansion of the Household assistance Fund adds £104 billion to the expenses of living assistance package.
This package includes raising the state pension for over 12 million pensioners by 8.5% starting in April, giving a pensioner on the new state pension an extra £900 next year, increasing benefits by 6.7% starting in April, and raising the Local Housing Allowance starting in April. For some, this could mean an average annual gain of £800.